BARGAINING CHAIRMAN’S REPORT

BILL SCOTT, Bargaining Chairman

Dave Chapman, Roger Routt (Global Distribution Center/Morton), Jack Trone (Mossville Engine Center/Mossville BB), and I attended the UAW-Caterpillar Council Meeting on October 16, 2007, and Agricultural Implement Council Meeting on October 17, 2007 in Lincolnshire, Illinois.

As of October 26, 2007, there were 66 active discharged and separations in the arbitration backlog. As of November 2, 2007, there were 2572 total active grievances in the arbitration backlog.

On September 24, 2007, Arbitrator Michael Paolucci issued a ruling on the discharge case of Monte Hightower (Global Distribution Center/Morton) that was heard on July 26, 2007. The grievance was denied. Mr. Hightower was suspended and subsequently discharged on October 24, 2005.

On October 26, 2007, the services of Arbitrator Michael Paolucci as the Permanent Arbitrator were terminated effective October 29, 2007. As a result, the arbitration scheduled will be suspended until the replacement for Arbitrator Paolucci as the Permanent Arbitrator is agreed upon by the Company and the Union.

Effective October 2, 2007, Terry DeFrates was recognized as a Grievance Committeeman at the Mossville Engine Center/Mossville DD replacing Joe McGuire. Effective October 8, 2007, Ken Woodmancy was recognized as a Grievance Committeeman at the Cast Metals Organization/Mapleton replacing Pat McCann.